When I suggest to Mr. Kalanick that Uber, in the fine startup tradition, was using the "don't ask for permission, beg for forgiveness" approach, he interrupts the question halfway through. "We don't have to beg for forgiveness because we are legal," he says. "But there's been so much corruption and so much cronyism in the taxi industry and so much regulatory capture that if you ask for permission upfront for something that's already legal, you'll never get it. There's no upside to them."

These rules are not designed to promote safety, nor improve quality of service. They are intended to stop innovation, protect incumbents, hurt independent drivers, and shut down Uber in Denver.

asserting that we are operating a transportation carrier... is like saying Airbnb is a hotel chain, that Travelocity is an airline, or that eBay is a store

Transportation has historically been a highly regulated industry, and the existing regulations weren’t designed to imagine a world where two neighbors who have never met are able to connect within a matter of minutes to share a ride across town.

Our contention is that if you read the regulations, such a notion doesn’t make sense. Are we supposed to give drivers a second drug and alcohol test? Are we supposed to have cars inspected by the DMV a second time after they’ve already inspected (our) partners’ vehicles?

"In recent months, as e-hail apps have emerged, TLC has undertaken serious diligence and is moving toward rule changes that will open the market to app developers and other innovators. Those changes cannot legally take place until our existing exclusive contracts expire in February. We are committed to making it as easy as possible to get a safe, legal ride in a New York City taxi, and are excited to see how emerging technology can improve that process. Our taxis have always been on the cutting edge of technological innovation, from GPS systems to credit card readers."

While Uber advertises itself as “Everyone’s Private Driver”—that is in fact a gross mischaracterization as Uber only chooses to cater to what it perceives as the technologically elite and well-off individuals. It is obvious that through Uber’s marketing it caters to young, hip, urban professionals, which is perfectly reasonable on the livery side. But using the publicly regulated (and limited number) taxis in order to create a two tier system— “high quality taxis” for the “haves” and the remainder for the “have nots”—runs contrary to the many ordinances enacted in Chicago to ensure non-discriminatory service for everyone in Chicago, not just those “cool” enough to use Uber.

"They don't what they're talking about," Linton says. "They often don't know what they're talking about."

According to Linton, the regulations would still allow for independent sedan operators with one car, and would only eliminate companies with a handful of cars that he says most frequently try to game the system. Linton says paper receipts will prevent drivers from charging for miles they didn't drive, and the regulations will only prevent sedans from operating in jurisdictions they aren't registered in—i.e., an Uber trip from Maryland to D.C. could be driven by a car from Maryland or D.C., but not from Virginia.

Global Positioning Services (GPS ) technology is not an issue as it is and has been widely used in non-commercial applications for a number of years. However, GPS has not been used in commercial applications for assessing transportation charges until Uber Technologies, Inc. introduced its use for this purpose. The major problem at this time is the fact that there are no established measurement standards for its current application and use in determining transportation costs similar to that of approved measurement systems for taximeters and odometers. Massachusetts law does not sanction unapproved devices for use in commercial transactions.

But there is still a culture gap here. Specifically, there are two ways of thinking about how business meets law: the permission model and the innovation model. In one, there's some gatekeeper that has set out a list of things you can do and things you can't. If you want to do something different that nobody has done, you can get permission from that gatekeeper to allow it, if it has enough merit and/or you have enough influence. In the other, you can do what you want, unless it's so harmful that someone takes action to stop you...

[...] Patents turn an innovation system into a permission system by carving up the space of possible things you could do but haven't yet, and giving them to anyone who comes along and pays a fee to grab that piece of idea land. Patents don't stop someone from building a product, but they do force them to check with everyone who has patents in the area first and get their permission.

That impedes someone from building a better website that effectively competes with an existing one. It even stops organizations like transit agencies from doing the mostly-obvious, like letting riders track trains and buses in real time, because a "patent troll" has the patent and wants to extract money from anyone stepping nearby.

A number of technology/policy/economics writers, like Tim Lee, have been talking about the destructive effects of patents for some time, but running into resistance from an interesting quarter: lawyers. It seems that most lawyers, accustomed to the world of law where everything is set up with a rule, find the permission system of patents more familiar and comfortable than the innovation model. The problem is, familiar doesn't mean good; patents are slowing down Silicon Valley and favoring large, established companies.

"Several months ago, Uber contacted me and asked to work together to legalize services like Uber in the District... Since then, I have met with Uber many times, negotiated in good faith, and believed that I had reached an agreement with them last week."

(c) (1) The minimum fare for sedan-class vehicles shall be five times the drop rate for taxicabs, as established by 31 DCMR § 801.3 (a).

(2) The time and distance rates for sedan-class vehicles shall be greater than the time and distance rates for taxicabs, as established by as established by 31 DCMR § 801.3 (b) and (c).